Much has been said and written about property being a stable asset for an investor. And while this can be attributed to the type of asset, it can also be partly attributed to the quality of the tenant leasing the space. If a landlord wishes to enjoy the full benefits of investing in real estate, it is advisable that they retain a quality tenant.
A quality tenant pays their rent on time, complies with the terms of the lease agreement, and takes care of the property. With such a tenant, you won’t have to worry about incurring high tenant turnover costs, commissions to brokers, or property damage.
The team from DRP Management has put together this article to advise you on retaining tenants, helping you make the most out of your rental.
Thorough Tenant Screening
A comprehensive tenant screening is the first step to ensure that you end up with qualified tenants. It gives you an inclination of a tenant’s character through an analysis of their previous rental payments, credit, employment, and income history.
From their rental history, you can learn if they will pay their rent on time and whether they comply with the rules and regulations. In addition, you will be able to assess their financial capability through their employment and income history.
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Through this process, you can ensure that good and reliable renters occupy your investment property, helping you retain them for the long term.
Get Feedback
Another way to retain tenants is to ask your tenants about their time on the property and the quality of the management. Let them review the management crew and the maintenance process. There are several ways that you can implement this such as using a face-to-face meeting or an online survey.
You want the truth from your tenants to be able to improve on the services that you offer. Learn about what your tenants appreciate on your property and also the areas of improvement. This information and its implementation will help you make informed decisions for your property.
If your tenant is unable to stay or renew, insist on an exit interview. Apart from the reason for leaving, inquire about the type of rental unit they are moving to, the neighborhood, and also what incentives you could have offered to make them renew their lease.
Be Friendly and Hospitable
As a landlord, you might be solely focused on the rental income of your property. However, it is crucial to prioritize a good landlord-tenant relationship to ensure long term tenancies.
To do this, we recommend a different approach to things. Your tenants would appreciate it if you would check up on them once in a while about the property. This approach would help you recognize and deal with all issues that arise from the property.
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Additionally, you could offer greetings or small incentives during the holidays or on special occasions as these small tokens of appreciation will not go unnoticed. This will further strengthen the landlord-tenant relationship, encouraging your tenants to renew.
Prompt Maintenance
Today’s renters are keen on the type of property they lease. This requires you to be on top of all maintenance requests and ensure the condition of the property all year round.
We recommend that you design and implement a maintenance plan. The maintenance plan ensures that the property is inspected regularly and defects are detected beforehand. This reduces maintenance costs in the long run and also keeps renters satisfied and happy.
Property maintenance can be a very vigorous and intensive task for any property owner. Should you require help with the process, we recommend that you hire a property manager like DRP Management.
Upgrades and Renovations
In such a competitive market, you will always see newer developments popping up in the area. What would make your tenant not consider the new space?
Upgrading your rental property almost guarantees tenant retention. Your tenant will appreciate the thought of you spending your resources to improve their livelihood. This will fit well if they have commented on the quality of the amenities on the survey/ tenant feedback meeting.
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Flexible Policies
Landlords are quite the rigid lot, holding firm to lease clauses and provisions that have been in place since a long time. But times are changing and so should lease policies. One particular one that is hurting landlords’ returns is the pet policy.
By being flexible on tenants keeping pets, you can make your properties more attractive and substantially increase your ROI.
Conclusion
Failure to retain a tenant on the premises comes with several costs and implications. You will have to carry out a comprehensive tenant screening solution, pay commission, create new ads on several platforms, and also incur costs in making the rental unit renter-ready.
By following the tips that we have outlined above, you can retain your tenants and enjoy the benefits that rental property offers. If you need help with property management needs, there is no better property company than DRP Management.
Our company helps real estate investors make smart choices that will make the leasing, management, and maintenance procedure easier, smoother, and less costly. Get in touch with us and receive a quote for our property services and solutions.
